DLocal Limited (NASDAQ: DLO) Securities Fraud Class Action

DLocal investors may receive additional information about the case by clicking the link "Submit Your Information" above.  If you are a member of the class described below, you may no later than December 5, 2023 move the Court to serve as lead plaintiff of the class, if you so choose.

A class action lawsuit has been filed on behalf of those who purchased or acquired DLocal Limited (“DLocal”) (NASDAQ: DLO) securities between May 2, 2022 and May 25, 2023, both dates inclusive (the “Class Period”). 

Case Background:
On May 26, 2023, Argentine news outlet Infobae published an article reporting that the Argentine government was investigating DLocal for a possible $400 million fraud.  Specifically, Infobae reported that the government was investigating DLocal for "improper maneuvers" and transfers abroad, with unnamed sources alleging that DLocal "operates as a mere instrument to take advantage of the exchange rate gap and to take dollars abroad with operations that are not reflected in the accounting."

The same day, DLocal issued a response to the Infobae article, characterizing it as "misleading" and "factually incorrect". DLocal's response also assured investors that the company is in "close contact with [Argentine] authorities", that "there is a continuous flow of information" with those authorities, and that, "[a]s of today, we have not been notified by any Argentinian [sic] authority regarding a foreign exchange investigation."

Following these developments, DLocal's Class A common share price fell $2.39 per share, or 17.32%, to close at $11.41 per share on May 26, 2023.

On June 5, 2023, DLocal disclosed in a filing with the SEC that it "received a request for information from Argentine customs authorities, although the Company notes that expatriation rules and foreign exchange operations are regulated by the Argentine Central Bank"; that "[o]n June 1, 2023 . . . the Company confirmed with a local Argentine court that a petition for inquiry had been filed by an Argentine prosecutor on May 30, 2023 in response to the same article published by [Infobae] seeking information using as a basis for the request the above-mentioned article"; and that "[t]he Company intends to respond to any and all requests for information from regulatory authorities to demonstrate that it has acted in accordance with applicable regulations."

Then, on June 15, 2023, DLocal issued a press release revealing that it was in fact engaging with senior representatives of the Argentine federal government to discuss, among other matters, the manner in which DLocal operates in the country, including DLocal's compliance with foreign exchange regulations.

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the company's business, operations, and compliance policies.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) DLocal engaged in certain improper conduct and transfers abroad in violation of Argentine laws and/or regulations, including, inter alia, foreign exchange regulations; (2) accordingly, DLocal's compliance controls and procedures, including its disclosure controls and procedures and internal controls over financial reporting, were deficient; (3) all the foregoing subjected the company to a heightened risk of governmental and/or regulatory scrutiny in Argentina and/or enforcement action by Argentine authorities; and (4) as a result, the company's public statements were materially false and misleading at all relevant times.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP:  Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com.  If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.